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QUESTION 6 Catan Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part,

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QUESTION 6 Catan Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,200 units, are as follows: Direct materials $4 40 Direct labor $4.00 Variable manufacturing overhead $3.50 Fixed manufacturing overhead $1.00 Total cost $12.90 The fixed overhead costs are unavoidable. Assuming no other use for its facilities, what is the highest price per unit that Catan Company should pay for the part? O $12.90 O $11.90 O $5.40 O $8.40

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